Primax — Investor Presentation 2021

Jun 8, 2021

PRIMAX ELECTRONICS

INDUSTRY & BUSINESS OPPORTUNITIES | TAIWAN | 03 JUNE 2021

For More Information Please Contact

Ellen Tseng

Director | Investor Relations | Taiwan ellen.tseng@primax.com.tw

INVESTOR RELATIONS

Primax Electronics Business Strategy And Industry Outlook

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PRIMAX | PRIVATE & CONFIDENTIAL

INVESTOR RELATIONS & BUSINESS OUTLOOK I 1

AGENDA

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15’
15’ 5’ 10’ 10’
BUSINESS STRATEGY
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BUSINESS STRATEGY

Growth strategy 3 senses in 1 strategy Path to industrial brand Core competency CSR & ESG commitment

GROWTH OPPORTUNITY

COMPANY OVERVIEW

EV and ADAS Product portfolio Smart access Product diversification Fleet management Numbers at a glance Audio segment Global footprint Conference product Manufacturing sites

FINANCIALS

QUESTIONS

Income statement Market outlook Balance sheet Company outlook Statement of cash flows Latest trends Product mix and margins Competitors Dividend payout Valuations

INVESTOR RELATIONS & BUSINESS OUTLOOK I 2

PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX AT A GLANCE AND LONG-TERM GROWTH STRATEGY

2019 Group numbers of:

• Revenue = NTD 80.65 billion Net profit = NTD 2.26 billion

CAGR 1989-2019

• Revenue = 16%

• Net profit = 14%

Stable returns

• 50%+ dividend payout

• 4-6% dividend yield







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







Founded in 1984 with long-term growth strategy of:

• Riding on the trend of “A World of Smart Everything”

• “3 senses In 1” strategy

• Value over scale

• Diversity to mitigate risks

Worldwide employee of 17,000+

Solid financial performance

• Strong cash cow business

• High ROE (5-year average

• of 15.6%)

Corporate governance & ESG

• First rated (2016, 2017, 2019, 2020)

• High ranked CSR/ESG (#38)

• SGS Sustainability Elite Award

• TCSA (top 50 Sustainability Award & Platinum Award for CSR report)

INVESTOR RELATIONS & BUSINESS OUTLOOK I 3

PRIMAX | PRIVATE & CONFIDENTIAL

RIDING ON THE TREND OF SMART EVERYTHING

Capitalizing On Mega Technology Trends

From wired to wireless, from PC to mobility, and from internet to IoT, Primax embraces these changes and is well positioned to capitalize on the current trend with its involvement and focus in the following areas:

• Smart offices

• Smart cities

• Smart homes

• Smart phones

• Smart speakers

• Smart cars

• Smart factories

Smart = Sensor based interactive hardware + High speed connectivity (5G) + Cloud based service + AI

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Smart Smart
Homes Offices
Smart
Cities
AI
Smart Smart
Phones Speakers
Smart Smart
Cars Factories
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INVESTOR RELATIONS & BUSINESS OUTLOOK I 4

PRIMAX | PRIVATE & CONFIDENTIAL

3 SENSES IN 1 HARDWARE SOLUTIONS PROVIDER

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3 Senses In 1:
Audio, Visual, Interface
Auto & EV
WFH Smart Home Visual (ADAS)
Conference Webcam Smart Access (Lock / Doorbell) Audio
WFH IoT / AIoT Smart Home 5G / Cloud / AI Auto & EV Audio
IoT / AIoT
5G / Cloud / AI Audio
Fleet Management
Fleet Management New Audio
Smart Access
Surveillance
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INVESTOR RELATIONS & BUSINESS OUTLOOK I 5

PRIMAX | PRIVATE & CONFIDENTIAL

HIGHER VALUE-ADD VISUAL TECHNOLOGY

From module to system / sub-system Higher value add / higher ASP / mid-volume

Full spectrum of Robot, machine integration vision, and wearable Capability: optical, ME, EE, FW, audio and video, and RF Automotive, fleet management, surveillance, and conference

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Diversifying into non-smartphone CCM which includes auto, surveillance, conference, and door lock and doorbell

INVESTOR RELATIONS & BUSINESS OUTLOOK I 6

PRIMAX | PRIVATE & CONFIDENTIAL

INTELLIGENT INTERFACE GROWTH FROM IOT

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Tuning Integration Compatibility
Capability Capability
Computing Data Transfer Sensing Power
Smarter Interface Core Technology
Devices AET & Lab 2.0
Docking Smart Access Webcam Content Creation Products Mouse Keyboard Trackpad
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INVESTOR RELATIONS & BUSINESS OUTLOOK I 7

PRIMAX | PRIVATE & CONFIDENTIAL

WELL POSITIONED IN AUDIO SEGMENT

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Professional Audio
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Events, concert, studio, commercial, and other audio equipment

Conference Products & Live Sound

Primax + Tymphany synergy is well positioned to capture market growth opportunity Automotive EV and ADAS driven

Speaker / OTE Headphone

Be the go to supplier for major international brands, where the industry’s entry barrier is based on scale and expertise

IoT / Transducers Automated manufacturing process + acoustic expertise

TWS (True Wireless Stereo) Robust market growth opportunity and a proven track record

INVESTOR RELATIONS & BUSINESS OUTLOOK I 8

PRIMAX | PRIVATE & CONFIDENTIAL

VALUE OVER SCALE AND PATH TO INDUSTRIAL BRAND

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Business Model New Technology Business Customer Diversification Avoiding Low Margins Margin Expansions
Transition
Increase percent of new More diverse customer base with Diverting businesses away from Increase high-margin mix
technology business in initial less single customer risk low margins, with focus on mid- Gross margin expansion
growth phase volume and mid-mix products EBIT margin uptrend
Manufacturing and Design Partner (CE + B2C) Ecosystem Partner (B2B Enterprise) Industrial Brand
Path To Industrial
Brand
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INVESTOR RELATIONS & BUSINESS OUTLOOK I 9

PRIMAX | PRIVATE & CONFIDENTIAL

DIFFERENTIATION AND CORE COMPETENCY

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Uniquely Positioned

Long History of ReODM Design Service Investing Provider

Moving Away From Low Diversity To Mitigate Value Add Risks

• 3 senses in 1 strategy

• A value added approach

• Long, proven track record since 1984

• Positioned as the go to ODM design service provider

  • Moving away from  China, Thailand and me-too business Czech manufacturing

  • Moving to higher  Singapore treasury margin products center

• Achieving through product life cycle transition

• All in one solutions product life cycle

• provider transition

• Visual, audio and  New technology

• interface expertise evolution

• Original design and manufacturing

• Flexible approaches and strong and long lasting relations with clients

• Seeking out cloud  US early engagement based service engineering team provider customers  UK R&D center in need of a reliable  Taiwan R&D and long-term hardware pilot run site provider

INVESTOR RELATIONS & BUSINESS OUTLOOK I 10

PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX CSR AND ESG COMMITMENT

	Actions & Implementation	Remarks
The Commitment Best Corporate Governance Sustainable ESG Commitment Sustainability And Accolade	Dedicated CSR office led by Chairman, with reports submitted to Board of Directors regularly	Semi-annual reports
	Publish certified CSR reports in both Chinese and English	Annual reports
	Ranked top 5% among 1600+ Taiwan listed company by Taiwan’s FSC	Awards in 2016, 2017, 2019 and 2020
	Transparent and regular financial disclosures in Chinese and English	Quarterly and periodic disclosures
	Establish system for long-term traceable trend and sustainable strategy for Chinese subsidiaries on environmental (manufacturing) social (labor) issues	Data and information updated regularly
	Reduce carbon emissions and power consumptions and improve labor environments to meet EICC standards	Strict compliance with local and global regulations
	Ranked by Common Wealth Magazine as one of Taiwan’s best ESG company	Ranked 38th in 2019
	Participate in global ESG evaluation program	ICS, RobecoSAM
	SGS annual Sustainability Award	Platinum Award for CSR report
	TCSA Taiwan corporate Sustainability Award	Ranked top 50 among all listed entities
	TCSA Taiwan CSR Sustainability Award	Platinum award for CSR report

INVESTOR RELATIONS & BUSINESS OUTLOOK I 11

PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX KEY INVESTMENT THESIS

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3 4
Margin Capital
Growth Opportunities
3 senses in 1 strategy
Car electronics (EV / ADAS), fleet 2 Trend 5
management, surveillance, and smart
door lock and doorbell
Shareholder
ECONOMIC LEGAL
Growth CSR / ESG
Capitalizing On Mega Trends
1 6
AIoT, smart home, 5G / cloud / AI, auto
and new audio
Margin Expansions
Better product mix, increase new
businesses, and focus on low-medium
volume but higher margin and / or ASP
products
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Capital Deployment

Increase dividend payout, less capex and strong free cash flow generating ability

Shareholder Return

Historically paid out 50-70% of earnings, with ROIC > 13% and ROE at about 15%

Commitment To CSR / ESG

Management has strong commitment to CSR / ESG, and Primax is oftened ranked as one of the best CSR /ESG listed entities in Taiwan

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PRIMAX | PRIVATE & CONFIDENTIAL

AGENDA

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15’
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15’ 5’ 10’ 10’

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GROWTH OPPORTUNITY

BUSINESS STRATEGY

EV and ADAS Smart access Fleet management Growth strategy Audio segment 3 senses in 1 strategy Conference product Path to industrial brand Core competency CSR & ESG commitment

FINANCIALS

COMPANY OVERVIEW

QUESTIONS

Product portfolio Income statement Market outlook Product diversification Balance sheet Company outlook Numbers at a glance Statement of cash flows Latest trends Global footprint Product mix and margins Competitors Manufacturing sites Dividend payout Valuations

INVESTOR RELATIONS & BUSINESS OUTLOOK I 13

PRIMAX | PRIVATE & CONFIDENTIAL

WELL-POSITIONED IN EV (ADAS) SEGMENT

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• Adaptive cruise control – onboard radar and laser sensor

• Lane departure warning system – mounted camera

• • Collision warning system – integrated radar, laser and camera • Parking assistance system – ultrasonic sensors • Night vision and pedestrian detection system – thermal camera and far infrared sensors

• Pressure management system – measures revolutions per minute and pressure inside

• Traffic signal detector – detect traffic signs by color-based, shape-based and learning-based methods

Primax’s strategy in the EV and ADAS market

• Opportunity: potential robust growth for EV and ADAS market

• Our key strengths: service, cost and quality

• Our strategy: grow market share, expand product portfolio, technology engagement scale up and expand global footprint

INVESTOR RELATIONS & BUSINESS OUTLOOK I 14

PRIMAX | PRIVATE & CONFIDENTIAL

ADVANCED DRIVER ASSISTANCE SYSTEM (ADAS) OUTLOOK

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Surging Penetration Rate
• The penetration rate of ADAS is
expected to grow strongly driven
mainly by consumer awareness
and government regulations
• According to Visiongain, global
adoption of ADAS will increase
from 4% in 2015 to 63% by 2026
109
Infrared 64 2022 2015
(USD million)
688
LiDAR
261
942
LRR
552
1,537
Ultrasonic
1,013
2,257
SRR-MRR
USD 14.19 billion CAGR 22.31% USD 92.25 billion Opportunity 1,021
BIS expects global BIS expects ADAS and autonomous Verified Market Intelligence Primax is well
automotive camera driving components to increase from forecasts ADAS demand to positioned to benefit Camera 2,827
to reach USD 14.19 USD 4.83 billion in 2017 to USD 56.59 reach USD 92.25 billion by from current trends 1,069
billion by 2026 billion by 2028, a 22.31% CAGR 2025, a 21.0% CAGR from 2018 Source: BIS Research
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PRIMAX | PRIVATE & CONFIDENTIAL

ADAS ─ COMPONENTS REQUIREMENT

Components Installed Components Used In Each Vehicle	2012 2025 2025 Onwards 2015 2018	2012 2025 2025 Onwards 2015 2018	2012 2025 2025 Onwards 2015 2018	2012 2025 2025 Onwards 2015 2018	2012 2025 2025 Onwards 2015 2018
	SAE Level 1 Driver Assistance	SAE Level 2 Partial Automation	SAE Level 3 Conditional Automation	SAE Level 4 High Automation	SAE Level 5 Full Automation
	Ultrasound 	Ultrasound 	Ultrasound 	Ultrasound 	Ultrasound 
	Radar (LLR) 	Radar (LRR) 	Radar (LRR) 	Radar (LRR) 	Radar (LRR) 
	Camera 	Radar (SRR) 	Radar (SRR) 	Radar (SRR) 	Radar (SRR) 
		Camera 	Camera (LR) 	Camera (LR) 	Camera (LR) 
			Camera (Sur) 	Camera (Sur) 	Camera (Sur) 
			Camera (Stereo) 	Camera (Stereo) 	Camera (Stereo) 
			Thermal Camera 	Thermal Camera 	Thermal Camera 
			LiDAR 	LiDAR 	LiDAR 
	Total Components6	Total Components17	Total Components29	Total Components31	Total Components34

Source: Frost & Sullivan, ARTC

INVESTOR RELATIONS & BUSINESS OUTLOOK I 16

PRIMAX | PRIVATE & CONFIDENTIAL

DIGITAL LOCK ─ SMART ACCESS

• Hardware Application • Leading supplier (#1) for residential locks in North America

• • Leading supplier (#1) for new apartment locks in the US

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Primax is a leading supplier of digital locks in the North American market

• Smart lock sales is expected to reach USD 2.4 billion by 2023, reaching a total of 26 million units of shipment globally

• Technology migration - door lock brands integrate digital features in newly defined smart segment

• New technologies integration (wireless connectivity, mini-led, touch pad, facial and fingerprint recognition) would lead to stronger future demand

INVESTOR RELATIONS & BUSINESS OUTLOOK I 17

PRIMAX | PRIVATE & CONFIDENTIAL

SMART DOORBELL ─ SMART ACCESS

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Hardware Application
• Top Retailer in the US
Market (FATP)
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Primax is a leading supplier of smart doorbells in the US market

• The smart doorbell market is projected to reach USD 4.4 billion by 2025, at a CAGR of 56.4% from 2018

• Differentiated technologies include radar, edge computing, low power consumption, PIR sensor, facial recognition, and wireless connectivity

• Platform / cloud providers dominate smart doorbell home security ecosystem with HW / cloud integrated offerings

INVESTOR RELATIONS & BUSINESS OUTLOOK I 18

PRIMAX | PRIVATE & CONFIDENTIAL

FLEET MANAGEMENT

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Hardware Application
• Largest Mobile
Telematics provider
• Leading supplier (#1) for
Fleet
body cameras for law
enforcement in the US
• SMB fleet management
provider and leading ride
sharing company in US
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Promising market for fleet management

• Global fleet management market is valued at over USD 18 billion a year

• Fleet management allows fewer accidents, increased productivity and reduced operational costs

• Fleet technology is dominated by software companies, and clients are looking for near complete HW solutions

• • Paradigm shift = big data + autonomous vehicles

INVESTOR RELATIONS & BUSINESS OUTLOOK I 19

PRIMAX | PRIVATE & CONFIDENTIAL

AUDIO ─ HORIZONTAL EXPANSION & VERTICAL SOLIDIFCATION

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Segment / Application Usage Products Remarks
Consumer
Life At Home • Wireless audio, speaker, sound-bar, transducer, home
integration, smart display
Consumer
Life In The Go • Portable audio, headphones, TWS, smart glasses
Professional Life On The Stage • Portable PA, PA, line array, rock power amp, power pro
module, digital mixer
Professional
Life In The Studio • Studio monitor, transducer, audio interface, digital mixer
Automotive
Life On The Road • Transducer, TranAmp, amplifier, components
True Wireless Stereo (TWS)
Life & Health • Hearing assist, safety, fitness
Customer
Life Of The Engineer • Flow DPS, component, MS
Audio & Visions
Life In The New Era • Content creation, conferencing
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PRIMAX | PRIVATE & CONFIDENTIAL

AUDIO ─ MARKETS WE SERVE

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Classification Tymphany Products And Solutions Remarks
Consumer vs
Professional
80 : 20
Markets Served
Speakers vs
System Solutions Headphones
70 : 30
Value add
products such as
transducers for
Peerless Key clients
Components
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PRIMAX | PRIVATE & CONFIDENTIAL

CONFERENCE PRODUCTS

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Hardware Application
• Top audio brand globally
• Leading gaming brand
• Leading enterprise platform
provider
• Top home connect provider
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Well positioned to capture the growing demand for conference products

• Global video conferencing market is expected to grow from USD 14 billion in 2019 to over USD 50 billion by 2026, a 19% CAGR

• Traditional enterprise segment (Poly, Huawei) is losing steam due to high TCO (total cost of ownership) and slow replacement rate

• The popularity of cloud-based conferencing solutions such as Skype, Google Meet, Microsoft Teams, and Zoom, offer easy-to-use services

• The emerging consumer video telephony and gaming demand should provide more upside to current market demand

INVESTOR RELATIONS & BUSINESS OUTLOOK I 22

PRIMAX | PRIVATE & CONFIDENTIAL

TYMPHANY STRATEGY AND AUTOMOTIVE AUDIO

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Winning Formula Product Portfolio
Tymphany’s Vision • To provide the
automotive industry with
innovative audio
solutions, supporting
emerging vehicle
technologies
Potential Market Drivers Size Reduction Mass & Power Reduction Natural Enhanced Voice Object Oriented Audio Noise Cancellation
Camera / Mic / Speak / Advanced Power Foam Cone Shallow Light Weight High 30-60% Unique Light Weight Transducer
Enabling Tymphany DSP / Image Processing Systems Coaxial Displacement Technology Power Saving Diaphragm Technology
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Enabling Tymphany Innovations

• Tymphany Strategy Improve Margins And Invest Into The Future

• • Eliminate non-profitable businesses

• Better product portfolio

• • Cost structure improvement

• China market expansion

• • Auto and IoT solution • Audio and video integration

Develop New Business TWS, China, professional audio, video conferencing Foundation Reinforcement R&D, global manufacturing strategy, execution

INVESTOR RELATIONS & BUSINESS OUTLOOK I 23

PRIMAX | PRIVATE & CONFIDENTIAL

AGENDA

5’

15’ 15’

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BUSINESS STRATEGY GROWTH OPPORTUNITY Growth strategy EV and ADAS 3 senses in 1 strategy Smart access Path to industrial brand Fleet management Core competency Audio segment CSR & ESG commitment Conference product

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COMPANY OVERVIEW

Product portfolio Product diversification Numbers at a glance Global footprint Manufacturing sites

10’ 10’

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FINANCIALS

QUESTIONS

Income statement Market outlook Balance sheet Company outlook Statement of cash flows Latest trends Product mix and margins Competitors Dividend payout Valuations

INVESTOR RELATIONS & BUSINESS OUTLOOK I 24

PRIMAX | PRIVATE & CONFIDENTIAL

PRODUCT PORTFOLIO AND APPLICATIONS

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Historical 2020 Sales
Classification Product Portfolio
Range Breakdown
14-30% 14
Visual Technology Dash Camera Police Body Camera ADAS Camera Camera Module Multi-Camera Ultra-Slim 360 Cam 4K 360 Cam
29-48% 39
Dash Camera Wireless Docking Gaming Mouse Mouse & Keyboard Gaming Controller [Smart Remote] Trackpad
Intelligent Interface Charging & Keyboard
6-13% 6
Business Equipment Surveillance MFP Thermal Printer Scanner / ADF Mobile Photo Printer
15-51% 42
Conference TWS Headphones Smart Portable Home Audio Loud Speaker Transducer
Audio Products Speaker Speaker
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INVESTOR RELATIONS & BUSINESS OUTLOOK I 25

PRIMAX | PRIVATE & CONFIDENTIAL

SUSTAINABLE SUCCESS IN PRODUCT DIVERSIFICATION

1999 Scanner 2007 Keyboard 2015 Auto Silitek (Chicony), 2005 Printer Genius, Darfon, LG Innotek, Mustek, Avision, Kinpo, Hon Hai Chicony, Lite-on Tech, Semco UMAX, Microtek Ichia, Sunrex, BTC*

1984 Telephone Jack 2000 Mouse 2006 Camera Module Genius, Darfon, Chicony, Kinpo, Hon Hai, Chicony, Lite-on Tech, Ichia, Sunrex, BTC* Lite-on Tech

2010 Audio

Eastern Tech, GGEC, Inventec, Merry, Luxshare, Goertek

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Revenue (NTD billion) Adjusted ROE 35% 35%
15%
19% 16% 16% 17% 14% 13%
14% 8% 10% 13% 7% 12% 16% 8% 16%
3% 2%
-4%
-26%
12.6 11.4 11.2 11.6 17.3 16.0 18.4 13.7 18.7 21.6 28.8 41.1 47.3 43.1 42.3 52.2 63.5 64.3 60.7 64.8 80.6 68.2
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Note: (1) Companies with an asterisk are delisted or no longer in business. (2) Primax’s 2008-2016 ROE is calculated on a conservative basis, adding back NTD 1.2 billion in goodwill that was written down before re-listing. PRIMAX | PRIVATE & CONFIDENTIAL INVESTOR RELATIONS & BUSINESS OUTLOOK I

INVESTOR RELATIONS & BUSINESS OUTLOOK I 26

NUMBERS AT A GLANCE

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Revenue, Earnings Per Share And Sales Breakdown

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Revenue (NTD billion) Earnings Per Share (NTD)
63.5 64.3 60.7 [64.8 ] 80.6 68.2 3.57 [4.06 4.40 4.67 ] 4.12 4.80 4.30
52.2
41.1 [47.3 43.1 42.3 ] 2.63 [2.91 ]
1.55
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Sales Breakdown 2020
Audio, 42% Interface,
39%
Business
Equipment,
6% Visual, 14%
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Net Profit, Margins And Workforce

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Net Profit (NTD million) Gross Margin (%) Operating Margin (%) Employee (persons)
Sales &
2,057 2,135 0 12.3% 12.0% 11.9% 0 3.7% 3.6% Admin Staff,
1,934 1,827 1,919 0 11.3% 11.7% 3.3% 3.4% 3.4% 3,430
1,773 10.6% 0
0 3.0% Technica
Direct l Staff,
0 0 Labor, 1,444
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
16,906
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PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX GLOBAL FOOTPRINT

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Asia Pacific
USA USA UK Czech Republic
Polaris Electronics Inc. Tymphany USA Tymphany UK Tymphany Europe
(US sales office)
Warehouse and logistics
Storage and distribution center
Taipei City, Taiwan
Headquarter
RD Center
North America And Europe
Tymphany Taipei
China China Japan Thailand
Tymphany Dongguan Dongguan main campus Tokyo sales office Rayong, Chonburi
Tymphany Huizhou Chongqing, Kunshan manufacturing facilities
manufacturing facilities
Tymphany Shenzhen
GZ, BJ, DG-RD centers
Hong Kong logistics center
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PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX MANUFACTURING SITES

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Kunshan Factory
Dongguan Factory (LW) GFA: 10,200 sqm
GFA: 220,000 sqm Products Manufactured
Products Manufactured Trackpad
COB, flip-chip, scanner, MFP,
SMT, PCBA, camera module,
Dongguan Factory (MZ) keyboard, trackpad, cellular Tymphany Hangzhou
accessory, office equipment
GFA: 41,500 sqm GFA: 36,700 sqm
Products Manufactured Products Manufactured
Mouse, keyboard, remote Bass sound, treble sound box,
controller wireless audio, headset
Thailand New Factory
Tymphany Dongguan
GFA: 87,000 sqm Chongqing Factory
GFA: 46,000 sqm
Owned 50% each by Primax GFA: 106,400 sqm
and Tymphany
Products Manufactured Capex: land USD 6.1 million
Products Manufactured
and plant USD 38 million
Bass sound, treble sound box,
Products Manufactured Mouse, keyboard module
wireless audio, headset
PC peripherals, audio
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PRIMAX | PRIVATE & CONFIDENTIAL

AGENDA

10’ 15’ 15’ 5’ 10’

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FINANCIALS

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BUSINESS STRATEGY GROWTH OPPORTUNITY Growth strategy EV and ADAS 3 senses in 1 strategy Smart access Path to industrial brand Fleet management Core competency Audio segment CSR & ESG commitment Conference product

COMPANY OVERVIEW

Product portfolio Product diversification Numbers at a glance Global footprint Manufacturing sites

Income statement QUESTIONS Balance sheet Statement of cash flows Product mix and margins Market outlook Dividend payout Company outlook Latest trends Competitors Valuations

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PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX FINANCIAL DASHBOARD

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Earnings Per Share (NTD) Cash Dividend Per Share (NTD) Cash Dividend Payout & Dividend Yield (%)
2.63 [2.91] 1.55 3.57 4.06 4.40 [4.67] 4.12 4.80 4.30 2020 2.50 3.20 2.40 2.40 3.00 57% 70% 61% 50% 70%
2.10
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NTD 4.30 6.2%
5.0% 5.1% 4.7%
4.0%
1Q21
NTD 1.13
2015 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Quarterly And Annual Sales Breakdown
1Q21 Sales Breakdown (%) Annual Sales Breakdown (%) Return On Equity & Return On Assets (%)
Audio, 29% 2020 39% 14% 6% 42% 2020 4.2% 13.0%
2019 29% 13% 7% 51% 2019 5.0% 15.4%
Business 4.8%
Equipment, Interface, 2018 34% 16% 9% 42% 2018 13.7%
6% 53% 2017 34% 23% 9% 34% 2017 5.9% 17.2%
5.4%
2016 40% 30% 9% 21% 2016 16.3%
VT, 12% Interface VT Business Equipment Audio ROA ROE
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PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX INCOME STATEMENT

	Gross Margin (%) Operating Margin (%) 11.8% 11.2% 11.9%11.7% 11.3%11.3% 13.0% 11.7% 12.5% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1.6% 2.4% 4.8% 3.7% 1.5% 2.4% 4.7% 4.1% 3.5% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21		Q1 2021 QoQ YoY Q4 2020 Q1 2020 (NTD million)
			Net Sales 17,159 19,559 13,524 -12.3% 26.9%
			COGS 15,011 17,269 11,999
			Gross Profit 2,148 2,290 1,525 -6.2% 40.8%
			Gross Margin (%) 12.5% 11.7% 11.3% 0.8% 1.2%
			Operating Expense 1,556 1,490 1,320
			Operating Expense (%) 9.1% 7.6% 9.8% 1.5% -0.7%
			Operating Income 592 801 205 -26.0% 188.4%
			Operating Margin (%) 3.5% 4.1% 1.5% -0.6% 1.93%
			Non-operating Items 42 (254) 60
			Income before Tax 634 547 266 15.9% 138.7%
			Income Tax 133 109 58
			Net Income 501 438 207 14.4% 141.9%
			Net Margin (%) 2.9% 2.2% 1.5% 0.7% 1.4%
			Net income attributed to Primax 505 367 276 37.6% 83.2%
			EPS (NTD) 1.13 0.82 0.62 82%

INVESTOR RELATIONS & BUSINESS OUTLOOK I 32

PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX BALANCE SHEET

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Current Ratio & Leverage (%)
120% 118% 120% 126% 126%
71% 70% 71% 67% 70%
1Q20 2Q20 3Q20 4Q20 1Q21
Current Ratio Total Liabilities-To-Assets Ratio
1Q 2021 Balance Sheet Key Indices (days)
AR Turnover AP Turnover
78 120
Inventory Days Cash Conversion Cycle
56 14
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ET
(NTD million)	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Cash	6,167	6,935	10,839	10,958	15,639
Notes & Accounts Receivable	12,145	13,579	14,807	11,967	11,016
Inventory	10,242	10,247	8,790	7,241	8,840
Total Current Assets	39,547	35,110	37,470	33,569	38,139
Fixed Assets	6,497	6,542	6,505	6,389	6,447
Total Assets	52,646	47,307	50,179	46,251	51,012
Notes & Accounts Payable	15,205	19,001	17,114	12,557	15,974
S-T Borrowings	8,662	905	6,530	7,678	9,152
CPLTD	121	75	0	0	0
Total Current Liabilities	31,316	27,941	31,201	28,406	31,877
L-T Borrowings	1,334	681	364	222	151
Total Liabilities	36,707	31,806	35,403	32,516	36,445
Total Equity	15,939	15,501	14,776	13,736	14,566

INVESTOR RELATIONS & BUSINESS OUTLOOK I 33

PRIMAX | PRIVATE & CONFIDENTIAL

PRIMAX STATEMENT OF CASH FLOWS

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Operating Cash Flow (NTD million)
6,628
3,961
3,412
2,268
1,787
2016 2017 2018 2019 2020
Capital Expenditure (NTD million)
3,485
2,689
1,913
1,202
1,034
2016 2017 2018 2019 2020
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	(NTD million)	Q1 2021YTD	Q4 2020YTD	Q3 2020YTD	Q2 2020YTD	Q1 2020YTD
	From Operations	(8,572)	3,961	2,049	(647)	2,088
	- Income Before Tax	634	2,478	1,931	868	266
	- Depreciation & Amortization	515	2,230	1,682	1,135	590
	- Notes & Accounts Receivable	1,434	5,630	4,413	7,246	8,601
	- Notes & Accounts Payable	(3,796)	(4,744)	(6,630)	(11,188)	(7,771)
	- Inventory	14	(39)	1,416	3,080	1,549
	- Other Operating Sources (Uses)	(7,373)	(1,594)	(763)	(1,788)	(1,146)
	From Investment	(517)	(2,796)	(2,131)	(1,378)	(1,047)
	- Fixed Assets	(533)	(2,689)	(2,008)	(1,305)	(993)
	- Other InvestingSources(Uses)	17	(107)	(123)	(73)	(53)
	From Financing	8,390	(975)	4,330	6,485	7,976
	- S-T Borrowings	7,757	(187)	5,438	6,586	8,060
	- L-T Borrowings	700	577	186	44	(28)
	- Cash Dividend		(1,077)	(1,077)
	- Other Financing Sources (Uses)	(66)	(288)	(216)	(145)	(56)
	Net Cash Position Change	(699)	190	4,247	4,460	9,018
	Effect of Foreign Currency	(70)	44	(109)	(203)	(79)
	Cash At Beginning of Year	6,935	6,701	6,701	6,701	6,701
	EndingCash Balance	6,167	6,935	10,839	10,958	15,639

INVESTOR RELATIONS & BUSINESS OUTLOOK I 34

PRIMAX | PRIVATE & CONFIDENTIAL

FIVE-YEAR CONSOLIDATED INCOME STATEMENT

	Gross Margin (%) Operating Margin (%) 11.3% 12.3% 12.0% 11.7% 11.9% 2016 2017 2018 2019 2020 3.7% 3.6% 3.0% 3.4% 3.4% 2016 2017 2018 2019 2020		2016 2019 2020 2017 2018 (NTD million)
			Revenue 64,329 60,742 64,811 80,650 68,241
			Gross Profit 7,267 7,480 7,789 9,431 8,111
			Operating Expenses 4,894 5,280 5,847 6,668 5,811
			Operating Income 2,373 2,200 1,943 2,763 2,300
			Non-Operating Income (Expenses) 391 648 422 151 179
			Income Before Taxes 2,764 2,848 2,364 2,914 2,478
			Tax Expenses 778 679 450 651 534
			Profit (Loss) From Discontinued Operations 62 0 0 0 0
			Non-Controlling Interests 115 112 87 128 25
			Net Income To Parent 1,934 2,057 1,827 2,135 1,919
			EPS (NTD) 4.40 4.67 4.12 4.80 4.30
			Operating Expense Ratio (%) 7.6% 8.7% 9.0% 8.3% 8.5%
			Effective Tax Rate (%) 28.1% 23.8% 19.0% 22.3% 21.6%
			Net Margin (%) 3.2% 3.6% 3.0% 2.8% 2.9%

INVESTOR RELATIONS & BUSINESS OUTLOOK I 35

PRIMAX | PRIVATE & CONFIDENTIAL

FIVE-YEAR CONSOLIDATED BALANCE SHEET

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AR & AP Turnover (days)
130
114 114 111 108
89
80 80 83 82
2016 2017 2018 2019 2020
AR Turnover AP Turnover
Inventory Turnover & Cash Conversion (days)
63
45 46 47 47
18 21 22
10 12
2016 2017 2018 2019 2020
Inventory Turnover Cash Conversion Cycle
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	(NTD million)	2016	2017	2018	2019	2020
	Current Assets	27,800	29,141	31,472	39,323	35,110
	Property, Plant & Equipment	4,717	4,438	5,510	7,364	6,542
	Right-of-Use Assets Intangible Assets	0 2,674	0 2,730	0 4,464	1,843 2,501	1,568 2,371
	Other Assets	1,931	1,466	1,716	2,115	1,716
	Total Assets	37,122	37,775	43,162	53,146	47,307
	Current Liabilities	22,801	23,115	26,061	33,563	27,941
	- ST Borrowings	0	996	1,203	1,092	905
	- Current of L-T Debt	382	136	68	28	75
	- NP & AP	16,893	16,350	18,448	23,745	19,001
	- Other Current Liabilities	5,526	5,633	6,343	8,698	7,960
	LT Liabilities	2,076	1,679	2,131	3,884	2,884
	- LT Debt	219	83	239	151	681
	- Leasing Liabilities	0	0	0	1,196	981
	- Other LT Liabilities	1,857	1,595	1,892	2,537	1,222
	Total Liabilities	24,878	24,793	28,191	38,642	31,806
	Common Equity	11,000	11,385	11,626	12,308	13,288
	Minority Interests	1,245	1,597	3,344	2,196	2,213
	Total Equity	12,244	12,982	14,970	14,504	15,501

INVESTOR RELATIONS & BUSINESS OUTLOOK I 36

PRIMAX | PRIVATE & CONFIDENTIAL

COMPETITORS AND PRIMAX’S COMPETITIVE EDGE

Industrial PC / IoT Peers

Primax Valuations PC Related Peers Acoustics Peers Industrial PC / IoT Peers Primax is currently trading at Compared to PC related In the acoustics realm, peers Most industrial PC / IoT 9-11x 2021F Bloomberg companies such as Liteon traded at 11-55x P/E, and companies trade at 20-30x consensus earnings, at the and Chicony, PC accounts for audio accounts for 42% of P/E, at higher valuations than Competitive Edge lower end of its historical less than 40% of Primax’s Primax’s total sales in 2020. Primax. However, Primax has band chart. Historically, revenue, or 10-20 ppt lower Operating margin for been aggressively making a Primax has traded between than competitors. Currently Primax’s acoustics business push in this realm, and 6-19x P/E. Primax is trading at par with T should improve with better significant progress has been Text its peers. product mix. made in the past few years. 9-11x <40% 42% 20-30x Interface Visual Audio Major Competitors

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INVESTOR RELATIONS & BUSINESS OUTLOOK I 37

PRIMAX | PRIVATE & CONFIDENTIAL

AGENDA

10’ 15’ 15’ 5’ 10’

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QUESTIONS

BUSINESS STRATEGY GROWTH OPPORTUNITY

Growth strategy EV and ADAS 3 senses in 1 strategy Smart access Path to industrial brand Fleet management Core competency Audio segment CSR & ESG commitment Conference product

COMPANY OVERVIEW

Product portfolio Product diversification Numbers at a glance Global footprint Manufacturing sites

FINANCIALS

Market outlook Company outlook Latest trends Income statement Competitors Balance sheet Valuations Statement of cash flows Product mix and margins Dividend payout

INVESTOR RELATIONS & BUSINESS OUTLOOK I 38

PRIMAX | PRIVATE & CONFIDENTIAL

Primax Electronics Headquarter

Taipei City

No. 669, Ruiguang Road, Neihu District 114 Taipei City, Taiwan +(886 2) 2798 9008 IR@primax.com.tw

About Primax Electronics

Primiax Electronics was founded in 1984 and is a leading supplier of IT, electronic and consumer solutions. The company is headquartered at Neihu Technology Park in Taipei City. Guided by the principle of "Global Operations with R&D and Smart Manufacturing in Taiwan", Primax now operates across Asia, The Americas and Europe. Highly-efficient production sites have been established in Taiwan, China and Thailand and the company has over 10,000 employees worldwide.

Seeing the potential of cloud technology and IoT, Primax has successfully developed human-machine interface products with touch, voice control, gesture recognition and wearable functions. Vision and video products have achieved notable successes in smart surveillance systems, mobile devices, smart homes, and advanced driver assistance systems. Our insistence on maintaining high yields as well as high quality in manufacturing and development is backed by our technical expertise. Our implementation of smart system engineering has also made us an indispensable partner for leading international brands and has allowed us to build up the energy needed for future growth. For the latest news from Primax Electronics, visit our website or follow us on

Safe Harbor And Disclaimer

Primax’s presentation contains forward-looking statements subject to significant risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In this context, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions.

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Actual results may differ materially from those contained in the forward-looking statements due to risk and uncertainties resulting from a number of important factors. Such factors include, but are not limited to: our highly competitive environment; the cyclical nature of our business; our ability to develop new products; and our successful execution in new business developments, and etc. All forward-looking statements in this presentation are based on information available to us as of the date hereof, we undertake no obligation to update these forward-looking statements for new information, future events, otherwise, or update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

Copyright © 2021 Primax Electronics